R.F.I.D. Radio Frequency Identification Device June 22, 2005

1. R.F.I.D.Radio Frequency Identification DeviceJune 22, 2005 Megan Falzone Henry Hagopian Rina Rub Eric Schaeffer

2. Presentation Agenda • Definition and Technology Overview • Benefits to Implementation • Barriers to Adoption • RFID Applications • Current • Future

3. Overview RFID – Radio Frequency Identification • Means of storing and retrieving data • What does it do? • Sends information via an electromagnetic transmission to an RF compatible circuit • Components • Reader with an Antenna • RFID Tag

4. RFID Tags • Tags • Active Tags • Passive Tags • Non-battery (Pure Passive) • Battery (Semi-Passive) • Memory Type • Read / Write • Memory can be read, stored, and revised • Higher cost • Read Only • Programmed at factory • Lower cost

5. History • Scientific Community • 1948 - RFID theory invented in a paper entitled “Communication by Means of Reflected Power” in 1948 • Government Involvement • 1975 - Los Alamos Scientific Laboratories (LASL) • Releases research to public • Publishes “Short Range Radio-Telemetry for Electronic Identification Using Modulated Backscatter” • Commercial Involvement • 1991 - Texas Instruments subsidiary TIRIS develops and markets RFID

6. RFID Technology Spending on the Rise Source: ABI Research

7. Technological Benefits • Advanced Monitoring • Data Advantages • Re-writeable Tags • Withstand Harsh Conditions • Direct Line-of-Sight Not Required • Flexible Read Range • Multiple Simultaneous Reads

8. RFID—Why Not? • Implementation: From Barcodes to RFID • Cost Prohibitive and Labor Intensive • Incompatibility • 11-digit barcode vs. 13-digit RFID tag • Requires Evaluation of IT Infrastructure • Capacity to handle and store terabytes of data?

9. RFID—Why Not? Privacy Concerns Client Identification and Tracking Other Nefarious Uses RFDump

10. RFID—Why Not? • Lack of Regulation and Standardization • Need for Standard Frequency • Defines tag and reader relationship • Impacts transmission range and speed • Multiple Global Groups = Multiple Conflicting Standards • GM Case

11. EPCGlobal • Gen2 EPCGlobal: • Mission: Set Global Standard for Electronic Product Codes/RFID • Standard for Passive Tag Recently Sent to ISO for Review • Consumer Privacy Guidelines

12. RFID in Action Today • Contactless Payment Systems • ExxonMobil Speedpass • First introduced by Mobil in 1997 (and Exxon-branded service stations in 2001) • Speedpass uses RFID reader located in the pump to talk to a small transponder device. • Example of a passive tag - programmed with a unique code • Simple and convenient for the customer • Point device at the reader and credit card is automatically charged. • More than 6 million active Speedpass devices in the US

13. RFID in Action Today • Electronic Toll Collection • MTA Fast Lane (E-ZPass System) • Auto Transponder -Example of an Active tag • Tag communicates vehicle identification and classification within milliseconds • 266,000 drivers - almost half of the Turnpike's toll transactions - use FAST LANE each day. • More than 700,000 vehicles currently have FAST LANE transponders. • E-ZPass System on the Route 95 Corridor Maine to Maryland

14. Leading the RFID Charge with Suppliers 10,000 Suppliers 43,000 Suppliers

15. Leading the RFID Charge with Suppliers • June 2003 - Ultimatum to 100 largest suppliers • By April 2005 – 23,000 pallets tagged by suppliers • Currently using passive tags – need to be scanned • Six million reads in a month • Improving the retailer’s ability to track inventory • RFID currently installed in 104 stores and 36 Sam’s Club’s • Plans to have in 600 stores and 12 distribution centers by year-end. • Wal-Mart’s next 200 suppliers have to start tagging by 2006.

16. The Future of RFID “For the life of me, I cannot understand why terrorists have not attacked our food supply, because it is so easy to do.” • Tommy Thompson, Former Health and Human Services Secretary December, 2004.

17. RFID and the Nation’s Food Supply • Opportunities for Foul Play Exist in the Food Chain • Public Health Security and Bioterrorism Preparedness and Response Act of 2002 “Track and Trace” • 4-8 hours to provide access to FDA if threat exists • “Track and Trace” rules are primary reason for implementing RFID • Information associated with RFID tags would be very beneficial in the product-recall process. • The recent Mad Cow scare is driving the cattle industry to adopt RFID

18. Calling Dr. RFID • Patient Identification • Jacobi Medical Center (NY) and Saarbrucken Hospital (Germany) • Outfitted over 1,200 patients with RFID wristband • Allows Doctors instant access medical history with a wireless PDA • Prevention of Surgical Mix-ups • Five to Eight wrong-site surgeries per month in the US • New RFID technology approved by the FDA in Nov. 2004 • Surgichip is a 2-by-1 inch RFID encoded tag • Tags are read by OR staff to confirm patient procedure

19. Big Brother’s Passport to Pry • US State Dept. plan to have US Passport embedded with a passive RFID chip by the end of 2005 • A target in your pocket? • Early tests showed chip may be read from yards away • May identify US citizens abroad • Vulnerable to identity theft at home • Public Outcry - comment period ended in April 2005 • Feds now “taking a very serious look” at a privacy solution

20. Conclusions • Widespread RFID solutions are on the horizon • Well beyond inventory management • The most important technological development for retailers since the barcode • A $7 Billion global RFID market by 2008 • Many challenges still exist • Privacy issues raised by consumer groups • Tags are still relatively expensive compared to barcodes • High up-front costs – software, hardware, data storage, security solutions, and technology implementation

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